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The Importance of a Sales Agreement When Buying Land in Kenya

Land Sales Agreement

Once you have found a piece of land you would like to buy, done the necessary due diligence to avoid getting tricked or defrauded, and have resolved to buy the land, the next recommended step is to get a good sales agreement. A sales agreement will provide you with several crucial benefits. 

#1: Legal Protection if Something Goes Wrong

A good and legally enforceable land sales agreement can protect you from many risks common in the land-buying process. It can protect you if the seller fails to meet one or more of their obligations. Armed with a good sales agreement, you can easily prove your case in a court of law and get compensated for the damages you are likely to suffer due to the seller’s neglect. 

A good sales agreement would also protect you in case of fraud. It has turned out in the past that a legitimate owner of a piece of land has defrauded two or more buyers by attempting to sell them the same parcel of land at the same time. As a buyer, it is hard to protect yourself against such fraud. However, a good sales agreement can help establish you as the party deserving to acquire the land. It can also help you recover the funds you might have paid to the dishonest seller and recover any other damages you may have suffered in the acquisition process. 

#2: Establishing Transparency

Transparency is vital in the land acquisition process. It helps enhance trust between you and the seller. It helps establish that each party to the transaction has nothing to hide and no one harbours ill intentions. 

A sale agreement establishes transparency by officially recording all crucial details of a sales transaction. A good land sale agreement records facts like your name, the seller’s name, the amount of money you and the seller have agreed to exchange for a parcel of land, the agreed-upon payment plan, the party who will clear any pending land rates, and whether the buying price is inclusive of the stamp duty. Willingness to record such facts indicates honesty and openness.   

#3: Clearly Setting out Each Party’s Obligations

The third key benefit of a good land sale agreement is that it sets out each party's obligations. As a buyer, the course of action you must take will be clearly established. The same will be done for the seller and any other party to the contract, such as a lawyer. 

It is easy to forget to assign responsibility for important obligations, like who will pay for pending land rates. A good sales agreement will help with such oversight. 

How to Get a Good Sales Agreement 

The land transfer process in Kenya is highly regulated. If you are not a lawyer, you are best advised to hire one experienced in land sales to help you prepare a solid land sale agreement. If a seller, for example, a land-selling company, presents you with their sales agreement, a good lawyer can help you understand the agreement and renegotiate important terms to best suit your interests.

A sales agreement is the way to go if you want to buy land safely in Kenya. A good agreement will afford you much-needed legal protection and help you get your money back if something goes wrong.     


Location: Kenya

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